Under the Hood of US Construction Are Bigger Values Than in GDP
Here’s one key takeaway from the Commerce Department’s report Nov. 1 on September construction spending:
While total construction outlays unexpectedly dropped 0.4% in September, the values of nonresidential projects and home building used to calculate gross domestic product were higher than the Commerce Department assumed in its first estimate of third-quarter growth.
• Value of nonresidential construction was an annualized $426 billion in September, exceeding the $423.3 billion assumption used to calculate 3Q GDP.
• July and August nonresidential construction values were also revised higher.
• Value of single-family home construction was an annualized $236.6 billion, more than the $233.7 billion assumption in GDP, after slight upward revisions in previous two months.
